Apple Still Down 16% – Should You Take A Bite?

Image by: Olle Svensson
By Steven Morrison II

Remember when people were speculating that Apple’s stock price was going to top the $1000 mark? On a particular September day, the stock reached it’s high of $705, which corresponded with the release of the iPhone 5. Apple looked certain to hit quadruple digits.

And then, suddenly, the hottest company in the world watched along with the rest of us in pure amazement as Apple’s share price went south for two straight months, bottoming out at $525 and losing 28% of its value.

That is the lowest it had been since briefly dipping to $530 back in May. Analysts like Brian White called the devaluation “insanely insane” in a Huffington Post report.

Crazy People

What was driving the sell-off, everyone wondered? Was it that the realities had sunk in that Steve Jobs wasn’t at the helm anymore? Had the company peaked?

That fiasco with the maps app didn’t help either. Thet guy in charge of that was publicly fired. Then there’s the mountain of complaints lodged about purple pictures being taken with the iPhone 5 camera, which lit up social media networks like a Christmas tree. (That was possibly blown out of proportion, claimed Apple.)

Then there were daily headlines in the court battles between Samsung and Apple over patents, not exactly public relations gold. Perhaps to stem the tide, heads rolled at Apple, including Scott Forstall, the company’s chief of mobile software, who got the axe back in October.

The bad news just wouldn’t end.

Is Apple Worth Buying Now?

Absolutely. The stock has already rebounded back to $585 a share. But there is still room to grow, as you can see. And helping that final bounce back to post-$625 numbers will be the sheer volume of  Apple products that will sell quite vigorously over the holiday season.

I am not alone in that assessment – Citigroup actually thinks Apple will get back to $675. So maybe you should empty out that mattress and take a bite out of Apple’s profits like the Wall Street traders are poised to do.